Zeon Set to Gain from Supplying Materials to Battery Makers

Dow Jones
08/31

0436 GMT - Zeon is likely to benefit from supplying materials to battery manufacturers, Nomura analysts say in a research report. Battery makers have been focusing on stable output amid swiftly growing demand for energy storage systems, and their business conditions are now such that Zeon can leverage its track record in supplying materials to them, the analysts say. The brokerage also factors in the company's product-mix improvements stemming from increased sales of materials for European electric-vehicle applications. Nomura lifts this fiscal year's operating profit forecast for the Japanese company to 43.7 billion yen from 38.7 billion yen. It upgrades the stock to buy from neutral and raises the target price to Y2,830.0 from Y2,560.0. Shares are 4.5% higher at Y2,508.5.

 

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